After a $300 million upgrade, Australian Paper’s (AP) Maryvale pulp and paper mill is on the market. Reflex copy paper is their most well known brand and is the reason the Central Highlands and Strzelecki forests have been logged and destroyed for decades. PaperlinX has recently put its mills up for sale, realising it’s not such a great profit maker any more. But it’s $50M short in its bid to raise $200M from investors to help cover its debts. PaperlinX shares have subsequently plunged 39 cents, or 22%, to a record low $1.36.
Robert Eastman, pulp and paper industry analyst said the sale is currently on hold and international bidders are keeping an eye on it. He agreed there was definitely a downturn in the pulp and paper industry right around the world. Selling paper isn’t the company’s core strength. He agreed the new 5% target for CO2 reduction could add some ’liabilities’.